St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-01-06
rates Charged FOR trspspot,ation 81 fretebs

rates charged for TRANSFORMATION OF freight
and passengers. If upon compiaint,or other
wise, it shall appear to the commission, after
lreful investigation, that such rates are in
any respect unequal, unjust or unreason-
abIe,'' it should be authorized to require and
compel such hangeS as shall make them
equal, reasonable and just. There can be
no good ground of objection to this regula-
ton upon the part OF the companies them
selves. Indeed, they should rather wish to
see it established, as the process of its en-
forcement wonld give opportunity for such
vindication of their equitable policy respS0es
ing the public, as the facts in each case Wotfd
warrant.
The excessive and fictitious capitalization
OF the property OF railway corporations is an
proper subject for legislative considerations
1t IS VIGOROUSLY the practice of these COM
pahleS, after realizing from the sale of their
bonds money sufficient to build and equip
thelr lines, to issue in addition stock to an
equai or greater amount, representing as q
RUE no value whatever but appropriated as
gratulty by the syndicate controlling the
franchises of the company To give these
lillSe issues OF securities real value, dividends
must De earned b. the road and paid thereon.
Tue practical effect of this is the perpetra-
tion OF fraud upon the public. Rates of
transportation must be fixed high enough to
realize net earnings sufficient to pay these
dividends attet fixed charges are met As
RUE. II complaint is made that rates are high
ana that commodities will not bear cost of
that
is charging ouly what is necessary to earn q
fair income upon its investment and perhsDa
reTerS to Its worn Statements made TO the
board OF comm S;ioners as to the amount Of
such investment which always includes such
| over issue of securities. This practice does
not require elaboration to expose its oppres.
Slve and dishonest character but 1t loudly
calls for Il remedy. The drafts for acts pro-
posed by the commissioners, to prohibit the
| ''lsSung of ia Sc, fraudulent, and part paid
or unpaid shares of stock of railroad COM
panies, and to ire. ulate the proceedings of
railroad companies desiring to increase their
capital stock, will protect the public against
& growth of the evil. The evident remedy,as
regards existing corporations is an adjust
ment of their revenues and dividends upon
the asis of a fair and liberal estimate of the
actual cost or value of their properties.
The incorporation into the fundamental
law OF the state of an amendment asserting
| the full power of the state as to corporate
control, is a recommendation of the commits
sioners in which | cordially concur. Though
this principle is sustained BY the courts it is
not wholly admitted by the corporations. AS
an authority coming from the constitution it
would command acquiescence.
The labors of the board under the law for
the regulation of warehouses and the inspec-
ton Of grain have resulted in the inaugural
ton OF system of state inspection and
Weighing which has worked most satIsfac-
torlly. The grades established and rules
graio have had the effect to remove the cause
for much of the complaint that had existed
among farmers and country shippers, of ir-
reguiarities and abuses respecting the dis
position of their property. Minnesota grades
| or wheat are now the recognized standard in
Eastern and European markets, and the in-
tegrfty of our state inspection commands the
| full confidence of the trade. Undoubtedly
the adoption of this system has added app
probably TO the market value of our wheat,
and resulted in realizing much more to the
producer than he would have received under
the old order of things. The grades and rules
| of inspection as first established proved so
salts Factory that any change in them was
generally objected to by farmers and dealers
ut the commencement of the present crop
year.
Some amendments to the law correcting
imperfections widening its scupe and extend
ing the supervision Of the commissioners to
county elevators, are recommended by the
board.
The successful results achieved under the
railroad and warehouse laws have been so
largeiJ due to the ability, industry and apti--
tude for their work of the commissioners,
that feel they have earned the thanks of the
people of the state. They have secured con-
ceSSionS from the railroad companies greater
than have ever been accorded to any state
railroad commission in the country, and they
have inaugurated a system of state grain in
spection which is being quoted and copied as
model in some of the older states.
There are now in operation 4,9L0 miles OF
railroad in the state, an increase of 73S miles
in two years. Cost per mile as reported,
$50 ,744.Sl. The earnings of these roads were
as follows:
Gross. S22, 617, 1871 S25, 102, 3l9. "a
Net. 1.456, 662 IS 1870 So, 052. SO
Taxes paid to
the state.... 611,743.55 6le,545.Os